So, inflation’s cooled—2.3% for April, down from 2.4%. Great news, right? The economy’s calming down, the Fed can maybe stop crushing everything with high interest rates, and we can all afford eggs again. But hold on—this isn’t all sunshine and stablecoins.
Crypto markets love low interest rates. Why? Because when borrowing is cheap and dollars lose a bit of their sparkle, people start eyeing Bitcoin like it’s digital gold dipped in hope. So yes, cooling inflation could be bullish for crypto… if it lasts.
But here’s the rub: those chunky new tariffs from April haven’t hit prices yet. They’re the ticking time bomb in the background. If they fuel a fresh inflation spike, the Fed could hit pause—or worse, raise rates again. That would make crypto a harder sell next to good ol’ Treasury bonds.
So yes, the CPI is down. But the real fireworks? Still loading.
